“When I use a word, it means just what I choose it to mean — neither more nor less.” Lewis Carroll, Through…
Less than “Less than Zero”
In June, the ECB lowered the interest rate on bank deposits, including reserve holdings in excess of the minimum reserve requirements, from zero to -0.10%. This week, surprising just about…
Going Prudential In a Macro Way
Obfuscation is an art form in which the Federal Reserve Board excels. It follows a few simple rules: Never use a word or phrase that is simple and widely understood…
The Market’s Missing Mojo
Easy money policy has its share of side effects. The stock market continues to hit new highs, thanks to the Fed, but the level of risk that investors and taxpayers…
Translating Fedspeak
While the week’s biggest news has taken place in Russia, Ukraine and China, it’s the news out of the Federal Reserve Board’s Federal Open Market Committee that’s most in need…
Mission Not-Quite Accomplished
Remember when the announced goal of quantitative easing (QE) was to reduce the unemployment rate to 6.5%? It’s now 6.6% and heading down. So can we expect QE to finally…
The Neverending Story
Why change? It’s been more than five years since The Federal Reserve Board began its quantitative easing program. We’ve had QE, QE 2, Operation Twist and the never-ending QE 3. …
Giving Thanks
Given our general grumpiness and Chicken Little attitude about current economic policies, you might think we’re not big on giving thanks. Not true. We love Thanksgiving. This uniquely American holiday…
Taperphobia Hits Wall Street
A taperphobia epidemic has Wall Street in a panic yet again. “Taperphobia” is an irrational fear of common sense. Symptoms include a falling stock market, soaring bond yields and ongoing…
Define “Forever”
In May, when Fed Chairman Ben Bernanke said that quantitative easing could not continue forever, the stock market tanked and the word “tapering” became the most feared word on Wall…